Answer:
Explanation:
1. True
Separation of record keeping for assets from custody over assets in custody over assets reduces theft and fraud . except in a case of collusion.
Fraud and theft of assets can be easily perpetrated and covered up when an individual combines the role.
2. False
Internal control focuses more on the internal operation of an organization rather than the external. Even though it can still be of impact in checking the excesses of external parties like the government agencies , but that is not its primary objective
3.True
Internal control's main objectives can be best accomplished when there is an operational system with managerial policies that protect waste , fraud and theft , being the major factors targeted to control
4.False
Separating the responsibility for a transaction between two or more individuals or departments is a major way of preventing creation of fictitious invoices and payment as it could have easily be detected if different individuals are involved in approval and payment of invoices.
Answer:
A gain has a Credit balance and is shown on the Income Statement. C. A loss has a Debit balance and is shown on the Income Statement.
Explanation:
As we know that the revenues and gains contains the normal credit balance while on the other hand the expenses and losses contains the normal debit balance and both are reported on the income statement
The gain would be reported on the credit side of the income statement and the loss would be reported on the debit side of the income statement
So the same is relevant too
Answer:
the equivalent amount the company can spend 3 years from now in then-current dollars is $3,943,200
Explanation:
The computation of the equivalent amount the company can spend 3 years from now in then-current dollars is shown below:
= $2,400,000 × (1 + 17.8%)^3
= $2,400,000 × 1.63942
= $3,943,200
Hence, the equivalent amount the company can spend 3 years from now in then-current dollars is $3,943,200
Answer: (E)
A pay policy line "reflects the pay structure in the market, which always matches rates in the organization."
Explanation:
A company will usually consider the the general pay structure of its market while setting its own pay level. This helps prevent the company from overpaying or underpaying its employees.
This pay level the company sets its pay at, is called a pay policy line.
